What is bitcoin and the history of bitcoin

What is Bitcoin

I talked a little about bitcoin in one of my previous posts where I was trying to explain the zarfund business. Many people don’t really understand what bitcoin is all about and in this post, I will try and explain bitcoin in the simplest possible way.

First of all we all know what currency is all about. I can define a currency as a generally accepted form of money which can be a coin or paper note issued by government of a country for the country.

Bitcoin is a currency but a digital currency. You can’t physically touch it. It was created using a computer program. That’s why its digital. Technology is growing really fast and the use of the internet is at the rise. So someone came up with an idea of creating a currency that will be used on the internet. That is why it is called the internet currency. Just like how countries have their different currencies example USA to dollar, Nigeria to Naira, bitcoin belongs to no country. It’s completely decentralized. It’s also the first ever currency created online using cryptography. The currency was made possible using blockchain technology. I will talk about the blockchain technology later in this blog. The security of bitcoin is also enhanced using a security technique known as cryptography. Bitcoin is so easy to use and you don’t need to be a programmer or a geek with computer in order to use it.

History of Bitcoin

Previous attempt has been done in the past to create a currency for the internet but none was successful until 2008. A man by the name Satoshi Nakamoto released a paper based on cryptography named “Bitcoin – A peer to peer electronic cash”. The identity of Satoshi Nakamoto still remains a mystery till this day.

            In 2009, the bitcoin software was finally released and each transaction done with bitcoin was recorded on an online public ledger known as the blockchain. First bitcoin was issued by Satoshi Nakamoto.

            In 2010, first bitcoin transaction recorded occurred when a man bought two pizzas with 10,000 bitcoin. If the man kept the 10,000 bitcoin today it will be worth over $150 million (57 billion naira) at the time of writing this post.

            From 2011-2014, during this period people tried to improve bitcoin. Because bitcoin is an open source software, it can be copied by anyone. This led to new coins similar to bitcoin to be released. These alternative coins are called “Altcoins”. Example include Namecoin and litecoin.
            During this period also, the price of bitcoin reached an all time high of $1,000 and quickly declined to 300$. People who were scared sold off their bitcoin thinking bitcoin has crashed. Some even called it a ponzi scheme. Most of them didn’t understand the concept of bitcoin. But those who actually understood the technology behind bitcoin and kept their bitcoin till today benefit more from bitcoin when you look at the current price today. Bitcoin is NOT a ponzi scheme.

            From 2015 to 2016, so many people started accepting bitcoin. About 160,000 merchants accepted bitcoin as a payment method. The number of bitcoin ATM also doubled in 2016.

            In 2017, more businesses are accepting bitcoin. Japan also passed a law to accept bitcoin in their country. Around July, bitcoin split for the first time into the main bitcoin abbreviated as BTC and the second one with a bigger block called bitcoin cash and abbreviated as BCH. Also bitcoin reached an all time high of $19,000 per coin in December.

Next i will talk about why bitcoin can not be stopped, who created bitcoin, the technology behind bitcoin and why the price of bitcoin is on the increase every year.

Read more about Bitcoin:

Why bitcoin can not be stopped, who created bitcoin, technology behind bitcoin and the discussion on today's bitcoin price.

Invest in bitcoin today. For more information about bitcoin you can comment below or email me

 Phone or Whatsapp: +2347032691811
Email: chinonsocharles@gmail.com
Twitter: @goonersky

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